Family enjoying the comfort of home

Can I get a tax credit for my new furnace?

For a lot of families, there always seems to be a lengthy list of home improvement projects that they would like to complete or new ideas they’d like to try. While several may not be necessary, furnace replacement is an example of a job that may be vital to keeping your home comfortable throughout the colder months in Ontario.

Getting a new furnace is a large investment. You’ll absolutely feel the return-on-investment on your indoor comfort as well as your energy bills, but it could be a tad overwhelming at first. The good news is that when you purchase a new energy-efficient furnace, you might be approved for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were prolonged through December 31, 2020. In order to receive the tax credit, you have to buy a furnace that has earned the ENERGY STAR label. However, it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When looking for furnace replacements, keep an eye out for products with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At Stan's Heating, Inc , our team can help you determine a product that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you will want to clarify that the furnace you pick has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE represents the percent of heat produced for every dollar of fuel consumed.

This tax credit is not going to be the only savings you’ll receive when you select a new high-efficiency furnace. A lot of the most efficient solutions can save you hundreds of dollars on your energy costs throughout the year. And your family will also have more confidence in your HVAC system to help your home stay at just the right temperature.

If you think of questions regarding your eligibility for a tax credit, or if there are other local savings you could be eligible for by getting a new high-efficiency furnace, give our professionals at Stan's Heating, Inc a call at 541-286-6602. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.

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